How to Lose Money (The Right Way)
Written by Anthony Baucum - Pro Dealer Secrets
pro dealer secrets
I bet you want to learn all about how to make money, huh? You want to know how to make $1000/day just flipping cars and never having a bad deal or losing money and moving to an island with millions of dollars?

It just doesn’t happen that way, at least the part about never having a bad car or taking a loss. It’ll happen and you need to know how to take a loss just as much as you should know how to make money.

This is going to be a long lesson. With a LOT of valuable info, re-read a few times.


Let’s get this one out of the way, you will literally find ZERO results on how to properly take a loss in flipping cars. Trust me, you’re going to want to learn by reading and not by experience.

If you’re not careful, you’ll find yourself down a rabbit hole of unsuccessful repairs and accumulating problems that wind up costing you a loss of $500, $1000, $2000 or even more if you’re really an idiot… (I’ve lost about $5000 EACH on 3 separate deals, so yeah you’re going to want to listen to me, the idiot, on this one. 

How do you prevent this from happening? Frist of all, See Part 2 on how to buy them right.

As long as you’ve bought the car cheap enough and protect your downside, you can cut it loose and move on to the next deal that makes money.

So let’s say you just bought a 2004 Ford F150 for $1500 that’s worth $3000. Congrats!
You got an amazing deal, that’s a $1500 profit. Time to break out the champagne!
Uh oh, you just drove it out of the auction’s running rough, misfiring, and no power. Must be spark plugs your mechanic says, That’s about $200. Still running rough. Surely it must be a coil pack or 2, the mechanic recommends to replace all 8 and it’ll be running like a brand new truck he says, that’s another $450.

Yeah it’s running better but it’s still bad enough that it won’t sell easily like it is.
After an expensive and extensive diagnostic bill, $150 later, your mechanic has very bad news. This F150 has bad cam phasers and timing chain tensioner, that repair is going to run about $2000.

Wow, how did we get here? From spending $1500 on what seemed like a good deal to about $4300 to make a truck that’s only worth $3000 run right. Your minimum loss if you get lucky and sell it for $3500 is an $800 loss. You’re discouraged, heartbroken from expecting to make $1500 to facing the prospect of losing $1500 and having dumped valuable capital into a crappy truck.


I’ve had nearly this exact scenario happen (see notes below) where I took a $5200 loss and $1000 loss on separate F150s with that exact problem and small losses on a few others.
I could’ve minimized my losses to around $800 total on both if I had just sold them without dumping money into them.

Alternatively, instead of fixing anything on it, you could have just listed that F150 you bought for $1500 for $1500 firm as a mechanic special and got your money back or at most lose a few hundred.

Losing money doesn’t mean failure, it may even be a very valuable learning experience about common issues on certain cars.

It’s not worth your time to continually try to fix one car when you could’ve spent that time finding more profitable deals instead of trying to avoid losing money on a project car.

Not only would you have spent all that time fixing a problem, you’re using money to fix it that you could’ve used to buy another car or 2 to flip. Or you may be using money you can’t afford to tie up in a project.


Keep in mind every car is an opportunity at a profit and you need as many opportunities as you can to make the most money, as long as make money on more than you lose you should be ok.
You have to be ruthless to yourself, kill your pride, take the loss and learn for the future.

As long as you do your research and don’t take unnecessary risks, you won’t screw yourself in the beginning.

When you’re starting out you have to play it safe, build up and save and build some more until you get to a level where you know enough about a particular car and it’s value to take a calculated risk.

That was a long winded and intricate lesson, but one of THE most valuable ones you can learn, 


Anthony Baucum

Anthony is a licensed dealer from Tulsa, Oklahoma who went bankrupt with his first dealership in 2016 and started a successful dealership averaging 50 cars sold per month as a result of the lessons learned.
Anthony used his experience in digital marketing and finance degree to create a new, unique system of buying and selling cars that isn't taught anywhere in the world.
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